How To Turn A Bear Market And ‘Negative Price Value’ 2018 Into A Bullish And Positive 2019?
How To Turn A Bear Market And Negative 2018 Into A Bullish And Positive 2019?
With 2018 ready to be left behind in terms of price performance, investors are ready for a positive 2019. However, how to change the direction of the market for the next year?
One of the main issues that the crypto market experienced during 2018 was the falling trading volume. This helped the market to plummet with just a few sellers. Bakkt’s Bitcoin futures would allow the market to have improved liquidity and volume, at least for Bitcoin (BTC). However, there are some rumors showing that other virtual currency asset could be supported.
At the same time, with platforms specifically designed for institutions, it might be possible to help the crypto market to grow and perform better than during this year.
Another important thing that could have a positive impact on the market would be the approval of a Bitcoin Exchange Traded Fund (ETF). The U.S. Securities and Exchange Commission (SEC) will have to take a decision on whether to approve the Bitcoin ETF proposals that have been made during the last year.
In 2018, several proposals have been discarded by the SEC while the one made by VanEck and SolidX has been delayed for February 2019. Every single time that the SEC rejected an ETF during this year, prices tended to fall.
With the approval of an ETF, liquidity and demand for Bitcoin could increase and help the market to grow. Nevertheless, if the regulatory agency takes the decision to reject this ETF, the market could turn even more bearish than before.
There are some analysts in the cryptocurrency market that expect Bitcoin to keep falling to new lows this year, even after experiencing a drop of more than 82% in 12 months. Some analysts pointed that Bitcoin’s price decline is related to the debut of Bitcoin futures back in 2017 with the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE).
Hester Peirce, an SEC commissioner that has a friendly position towards virtual currencies, said that she is working trying to convince her colleagues to have an open mind on virtual currencies. The SEC chairman, Jay Clayton has also given his opinion on the matter, saying that the market needs to be less manipulated before an ETF is approved by the SEC.
It will also be important for the market to focus on real developments more than hype. If 2018 leaves us something is the fact that when there is less hype it is possible to create better products and improve services. When the market was booming at the end of 2017, hundreds of new Initial Coin Offerings (ICOs) were launched. However, most of them are currently not operative.
In addition to it, the number of shops and places accepting virtual currencies should increase in order to help the market grow. There are several investors and users that want to spend their coins and purchase goods and services with them.
This year has also seen the creation of many new stablecoins such as TrueUSD or USD Coin (USDC), among others. This would provide more stability to the market and new ways to hedge against the volatility in virtual currencies.
2019 could be a good year for virtual currencies if some of the issues mentioned before become reality. Investors need also a better regulatory environment where to operate and companies want to have clear rules before starting a crypto or blockchain company. 2018 is being left behind and a new year is starting with new and exciting things for virtual currencies.